ST. PAUL – In an effort to right size Minnesota’s budget, leaders in the Minnesota House have agreed to a budget framework that recognizes our state’s future economic woes and begins to address them.
Last session, the legislative majority and Governor Walz approved a budget that wasted an $18 billion surplus, raised taxes by more than $10 billion, and grew state government spending by 40%. Because of these decisions, Minnesota is projected to face a $6 billion deficit during the next budget cycle – which could be the largest budget deficit in our state’s history.
State Representative Greg Davids (R-Preston), who chairs the Minnesota House Taxes Committee, said he’s pleased there’s bipartisan agreement to begin the process of right-sizing the state’s budget.
“In the taxes area alone, we must make $80 million in tax reductions,” Davids said. “I’ll be working with the House Democrat chair to put a taxes budget deal together, and I’m positive we can get it done.”
Davids said the agreement reduces spending by $3.9 billion when compared to the 2024-25 budget and is $1.159 billion below the 2026-27 budget base. For the 2028-2029 projected budget, more than $2.6 billion in spending would be eliminated.
“The good news is the House position is to avoid tax increases to eliminate the projected deficit, and that the targeted reductions would represent the largest total spending cut in the state’s history,” Davids concluded.